New employee priority amount in business failure
3 SEPTEMBER 2012
From 28 September 2012 the maximum priority amount for employees in liquidations, receiverships and bankruptcies will increase from $18,700.00 to $20,340.00 per employee.
Liquidators, receivers and the Official Assignee in a personal bankruptcy must pay certain amounts to employees, in priority to ordinary unsecured creditors.
These preferential employee entitlements include:
- holiday pay
- redundancy compensation, and
- wages or salary for the four month period prior to the liquidation,….”